Lupin Limited: A Stellar Q2 FY26 Driven by Strategic Momentum and Margin Expansion

Lupin Limited has delivered an exceptional performance in the second quarter of fiscal year 2026, marking a significant milestone in its growth trajectory. The pharmaceutical major reported record-breaking total revenue from operations and EBITDA, surpassing INR 7,000 crore and INR 2,100 crore, respectively, for the first time in its history. This achievement underscores the company's robust business model and consistent operational excellence, extending its streak of year-over-year growth to an impressive 13 consecutive quarters. The strong financial results are a testament to broad-based growth across all key markets, coupled with a disciplined focus on expanding profitability.

Margin expansion was a standout feature of the quarter, with EBITDA margins reaching 31.3%. This represents a substantial increase of 750 basis points year-over-year and 470 basis points quarter-over-quarter, reflecting the highest level recorded in many years. This impressive margin improvement was primarily driven by a favorable product mix, a lower share of in-licensed products, higher profitability from Loss of Exclusivity (LOE) products in India, and increased sales volumes. The company's unwavering commitment to operational efficiencies and cost improvements across its global operations also played a crucial role in enhancing profitability.

Segmental Performance and Strategic Initiatives

Lupin's growth was broad-based, with significant contributions from its key markets. The U.S. business recorded sales of USD 315 million, a 41% year-over-year increase, driven by new product launches and the continued exclusivity of Tolvaptan. The company also reported successful approvals for complex injectable products, including generic Victoza®, Risperdal long-acting injectable, and Glucagon, significantly strengthening its U.S. portfolio. The India formulations business grew by 3.4% year-over-year, with the core prescription business expanding by 8.8%, outperforming the IPM growth. Excluding the impact of LOE products, India's domestic growth stood at a robust 10.7% for H1 FY26, with chronic segments now accounting for 65% of the portfolio.

Other Developed markets, including Europe, Canada, and Australia, delivered 19% year-over-year growth, with Europe as a standout performer at 26.8%. The planned acquisition of VISUfarma, with its portfolio of 60-plus innovative eye health products, is set to further expand Lupin's European footprint and build a global specialty franchise, aiming for USD 150 million in annualized revenues by fiscal year '27. Emerging markets also showed impressive growth of 45% year-over-year, led by strong performances in Brazil and South Africa.

Outlook and Sustainability Focus

Looking ahead, Lupin's management has provided optimistic guidance, expecting full-year EBITDA margins to be in the range of 25% to 26%, an upward revision from previous estimates. The Effective Tax Rate (ETR) is projected to be around 21% to 22%, and R&D expenditure is anticipated to be between 7.5% and 8.5% of sales. The company is also making significant investments in its Coral Springs site in the U.S. to bolster its respiratory franchise and plans to file over 15 products in FY26, with a focus on complex generics.

On the sustainability front, Lupin achieved a remarkable S&P Global ESG score of 91 in 2025, a 15-point improvement over the previous year. This achievement positions Lupin as a leader in the pharmaceutical industry for sustainability and reflects its deep-rooted commitment to responsible growth. The company's focus on complex generics and biosimilars, coupled with strategic acquisitions and a robust pipeline, positions it well for sustained value creation for all stakeholders in the years to come.

Lupin's Q2 FY26 performance demonstrates strategic clarity and disciplined execution. The company's ability to deliver consistent growth, expand margins, and advance its complex product pipeline, while maintaining a strong focus on sustainability, reinforces investor confidence in its long-term prospects.